Turki Al-Malhim, Head of Vehicle Insurance Section at Villa Cooperative Insurance Company, has said that there are 4 major reasons for the increase in car insurance fees.
Talking to MBC channel, he said that one of the reasons for the increase in the cost of car insurance is that traffic accidents increased by 25% during the first 9 months of 2022 compared to 2021.
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Spare parts have become expensive. Service charges have increased while logistics services have also become expensive.
The third reason is that the estimates of damages in some traffic accidents are being exaggerated. There is cheating in this regard.
The cost of insurance companies has also increased in terms of support services.
Turki Al-Malhim said that the practice of car insurance in Saudi Arabia is not more than 51 percent, while the Saudi Central Bank SAMA has set a target of 77 percent in this regard by 2025.
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